If you are like most people, you know that investing is a great way to build wealth. However, most assume that you need to be rich to get rich. But there is another way. It’s what bootstrap entrepreneurs do without startup capital to get ahead.
Sweat fairness and perspiration gain
Have you ever heard of sweat equity? Sweat equity is the contribution we make to a project through our own effort, rather than buying a stock with our money. Sweat equity could also be the value we add to our property, but we are not talking about this type of sweat equity. I bet you have a lot of that kind of sweat equity, but the problem is, it won’t pay you dividends until you sell your house. Not only can sweat equity investments be lucrative, they can also generate much higher returns than equity investments. However, there is a catch, you only have so much time in a day. That’s why it’s so important to focus your sweat on things that will not only earn you income now, but will continue to do so more in the future.
Sweat equity is the effort that adds or produces an asset
Most people think that an asset is only bought. But that is not the case. Here’s a list of cash-producing assets that can be built with your own capital.
- Writing a book
- Write a song or album
- Building a product
- Creation of an educational training course
- Building a network
- Building a customer base
All of these things can be built on sweat equity and can continue to pay you long after you get the job done.
The rich get richer and the poor get poorer, they say. I used to believe that when I was working for someone else. That was the second dumbest thing I ever did. The dumbest was applying for the job first. Once I had access to the finances of the company I worked for, I discovered that smart people get richer. Others are grateful for a salary increase to cover inflation.
Time to have a plan B
Employers have moved away from the idea that an employee is a long-term asset to the company, someone to nurture and develop, to a new notion that they are disposable. Before the boss gets rid of you, you must find a way out of the relationship.
Don’t fool yourself into thinking that your boss loves you to the teeth for what you do, or that the company plans to keep you comfortable forever. That only happens to horses today that gave the best of themselves. You are where you are because you are a money maker. The only problem is that it is not making money for you.
Building a network and customer base
We are not the best-selling authors, musicians, product inventors, or educational thought leaders. All of these ways of using sweat to build equity require talent. However, we don’t need any special talents because all you need to do to start investing with your effort to generate capital is to build a network.
Anyone can build a network.
In fact, everyone already has a network. They just don’t have a vehicle to turn that network into a cash-producing asset. If you want to know how normal people like you are harnessing the power of networks to have more time, earn passive income and make their own hours.